McColls Newsagents Fined ￡225k for failing in its Duty of Care

And they just keep on coming! National retailer McColls the familiar newsagents with over 12000 stores across the UK became the latest company to be fined for failing in it's duty of care to staff. The newsagents had a prior history of a serious assault on a manager and it had not acted upon lessons learned from that.

A further six robberies occurred within the Wirral area and that involved staff:

• 26 April 2011 – a shop manager was knocked out and suffered concussion after being hit by a robber while transferring ￡8k to ￡10k in takings to the shop on Highfield Road, Rock Ferry.
• August 2011 – a lone female shop worker was threatened with a knife while opening up the shop.
• October 2011 – a woman working at the store on Upton Road, Noctorum, was threatened by a robber with a crowbar.
• December 2011 – a gunman pointed a pistol at a customer’s head and threatened a staff member.
• In two further incidents gangs of men broke into shops on Homelands Drive, Prenton and King Street, Rock Ferry and robbed shop staff, some of whom were so traumatised they said they could never work in a shop again.

Staff had previously raised issues with management such as a lack of equipment; lockable doors into back room areas; CCTV and visibility as to who was entering the shop.

The case was brought by the local Council and a spokesperson said: “In undertaking its regulatory functions the council seeks to work closely with businesses to secure compliance with legislation that safeguards health and safety. Where appropriate, we will not hesitate to take formal action through the courts where businesses fail to comply with their duties to protect their employees."

Judge Graham Morrow said: “The lesson must be brought home to managers and shareholders by the size of the fine. Those who work for the company must have the confidence that the lesson has been learned.”

The company pleaded guilty to six charges of breaching its duty of care to staff in May this year and was ordered to pay a ￡150,000 fine as well as ￡78,000 prosecution costs. This headline number of course excludes the 'other' costs of the companies defence team; negative PR and damage to the share value; additional payroll and administration costs caused by increased staff absences (eg caused through illness or stress) plus the hidden management time and costs created during the HSE investigations and Council prosecution etc, etc.

Listening to staff costs very little and simple risk control measures, especially for lone worker staff, are widely available and very affordable. When viewed in comparison to these levels of fines. Is it really worth the risk?